-ACRC “looks forward to the enhancement of business’ responsiveness to the strengthened ESG management and international anti-corruption standards”-

On June 21, the Anti-Corruption and Civil Rights Commission (ACRC) held a policy advisory council meeting, which is comprised of experts from legal and business circles, with the aim of enhancing the responsiveness of businesses to Environmental, Social, and Governance (ESG) management and international anti-corruption standards, such as Foreign Corrupt Practices Act.

The latest meeting was the third in a series, following the meetings held in June and December 2022, respectively, involving 20 participants^*, including anti-corruption and ESG experts, experts from legal and business circles, and businesspeople, all of whom have participated in the development of the Integrity and Ethics Compliance Program (K-CP).

* (Legal circle) Commissioner from the Sentencing Commission, lawyer at Kim
& Chang, etc. (Economic organization) the Korea Chamber of Commerce and Industry, the Federation of Korean Industries, Korean Enterprises Federation,     Korea Federation of Small and Medium Business, etc. (Business) LG Electronics and CJ ENM
(Anti-corruption) Transparency International-Korea, UNGC Network Korea, etc.

The recent policy advisory council meeting served as a platform to complement the checklist for voluntary compliance and compliance methods of the K-CP Guideline for Business, which is planned to be distributed in the future, by listening to a wide range of opinions from experts and businesspeople regarding the direction and major content of the Guideline.

K-CP Guideline for Business includes content that helps domestic companies to efficiently and voluntarily comply with regulations related to foreign anti-corruption and ESG. In particular, the checklist of the Guideline will enable anti-corruption regulations and guidelines of each diagnostic index to be easily understood.

The checklist has six categories^*, including the diagnostic index of public disclosure and improper solicitation. It is expected that businesses comply with international anti-corruption guidelines voluntarily and actively by utilizing the checklist.

* CP governance, policy and procedure, high risk sector/management of third party, CP culture, monitoring and measures, reporting and archiving

ACRC has committed to ensuring that Korean companies actively respond to the strengthened international anti-corruption standards. With regard to this, the Commission conducts a trial operation of the K-CP, provides training, and releases monthly publications called “ACRC Integrity and Ethical Management Briefs.”

※ International ESG disclosure standards, such as the Corporate Sustainability Reporting Directive (CSRD) and the Sustainable Finance Disclosure Regulation (SFDR) of the European Union (EU), have been strengthened, and “anti-corruption” has become one of the four pillars of India-Pacific Economic Framework (IPEF), established in May 2022.

Furthermore, in June 2022, ACRC distributed the Integrity and Ethics Compliance Program Guideline for Public Sector, including state-owned companies, and has been supporting public institutions to voluntarily prevent and mitigate corruption risks in conjunction with the integrity efforts assessment index.

An ACRC insider said, “We anticipate that the K-CP Guideline for Business could ensure that Korean companies proactively respond to strengthened ESG management and international anti-corruption standards.”